Key Points
- Bitcoin experiences its steepest quarterly drop since August 2024, plunging to nearly $86,000.
- Despite the downturn, Bitcoin whales accumulate 26,430 BTC while short-term holders sell off.
Bitcoin recently fell to a three-month low of nearly $86,000, causing concern in the market. This marks the most significant quarterly drop, about 20%, since August 2024.
This drop follows weeks of Bitcoin defending key price levels, which eventually led to a break in its long-term market structure. This has hinted at the possibility of extended bearish momentum.
Technical Indicators and Market Sentiment
The Relative Strength Index (RSI) suggests that Bitcoin is in oversold territory, raising concerns about a swift recovery. With Bitcoin down nearly 10% for the week, investors remain cautious as they assess the broader implications of this sharp decline.
Despite the downturn, Bitcoin whales have been accumulating aggressively, suggesting underlying confidence in the asset’s long-term trajectory.
Data from CryptoQuant shows that whale accumulation addresses received 26,430 BTC on the 24th of February. These wallets are typically linked to over-the-counter (OTC) deals and long-term holdings.
Short-term holders, however, have felt the pressure. Addresses holding Bitcoin for less than 155 days moved 27,500 BTC at a loss within the past 24 hours.
Bitcoin’s Current Price and Way Ahead
Bitcoin’s sharp drop triggered a widespread market sell-off, pushing sentiment into “extreme fear” territory for the first time in five months. While some altcoins have started to recover, Bitcoin remains under bearish pressure.
The current price of Bitcoin is around $88,215.21, after a 1.27% dip in the last 24 hours, according to CoinMarketCap. This uncertainty reflects the cautious stance of traders.
Bitcoin’s ability to break past the $97,927 resistance level could signal a potential bullish reversal. However, if the bearish momentum continues, a further decline below the critical $86,110 support level is likely.
The market’s next move will largely depend on whether Bitcoin attracts enough buying pressure to shift sentiment, or if continued weakness fuels another wave of sell-offs.
